Global Asian Stocks Goes Higher Q4 Lifts Equities; Metal Stocks Outstands

Must Read

India’s benchmark equity indices closed higher for the fourth straight session on Monday on the back of strong buying support for metal, pharma, and auto stocks.

The two indices had a gap-up opening on the back of strong global cues and a lower number of new domestic Covid cases.

Globally, Asian stock markets were mostly higher on Monday, following the positive signs from the US on Friday as rising commodity prices and weaker than expected US job growth in April calmed fears about higher inflation, interest rates, and a cutback in the stimulus.

In contrast, European indices gave up early gains even as investors weighed the prospect of lower interest rates for a longer duration on the back of subsiding inflationary pressures.

On the domestic front, investors cheered a drop in daily Covid cases which provided hope of tapering down of the second wave.

Even healthy quarterly results so far provided support to the market.

Among sectors, healthcare, metals, capital goods, power, auto, oil, and gas were the main gainers while IT was the sole loser.

The S&P BSE Sensex closed at 49,502.41, higher by 295.94 points, or 0.60 percent, from its previous close.

The Nifty50 of the National Stock Exchange ended the day’s trade at 14,942.35, up 119.20 points, or 0.80 percent, from its previous close.

“Nifty has made another gap in succession but ended with a Doji for the second consecutive session, indicating partial profit taking towards the close especially as it approached 15,000,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Investors are mindful of the market fallout as state after state locks itself down in India to contain the spread of the coronavirus as infections and deaths surge and hence keep taking profits rotationally. 15,044-14,863 is the band for the Nifty in the near term.”

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: “Though many states have extended lockdown and some corporates have curbed production or commercial activities, the market seems to be ignoring all.”

“Metals continued with a rally as iron ore futures and copper prices hit record highs amidst a surge in demand. Even pharma rallied on the back of strong IPM growth for the month of April led by huge demand for Covid drugs and low base of last year.”

Vinod Nair, Head of Research at Geojit Financial Services, said: “Domestic bourses continued to ride on its optimistic wave mirroring strong across-the-board buying with metals, auto and pharma stocks leading the rally. US job growth significantly slipped its April forecast signaling sluggish momentum in the labour market while a cyber attack hiked the US oil prices.”

“Despite a decline in April auto sales numbers due to the impact of Covid lockdowns, the auto sector managed to stay afloat owing to its long-term positive outlook.”

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

- Advertisement -
- Advertisement -

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.


- Advertisement -


- Advertisement -
- Advertisement -